Volkswagen Group boss Herbert Diess has said he would not consider buying a stake in Tesla.
Recent reports suggested that VW was eyeing an investment in the groundbreaking but controversial American EV firm.
Speaking at the Frankfurt motor show, where the firm launched the ID 3 electric hatch, Diess said: “No, I wouldn’t consider a stake in Tesla. I really admire what it has done, which is also helpful for us because it is really pushing us [in electrification]. The cars are nice and I like to drive them.
“It’s a brave move to come into automotive because it means such high investment.”
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He added: “I wouldn’t buy a stake because I think all they are doing, we can do.”
Diess said that he believed VW will utlimate have an edge over Tesla: “In the long run, I think we might have a bit of an advantage because of scale. On the hardware side, there is probably not so big a difference because they are are also have a dedicated electric platform and they’re quite big already for an EV manufacturer.
“But when it comes to the next big thing, which is software, Tesla is strong in software – but software really is a volume game. If you do software, you have to use ten million devices, not one million.”
When asked if Diess would consider buying Tesla if it became bankrupt, he commented: “I don’t believe that [bankruptcy will happen]. I like Elon quite a lot and I wish him all the best. Tesla is close now to profitability. Probably the biggest challenge is the stretch in category class because the investment is so big.”
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Bob Cat Brian
VW ‘We want to buy a stake of
VW ‘We want to buy a stake of your company’
Tesla ‘We aren’t selling you any’
Some time later...
VW ‘We didn’t want it any way’
shenmue
Tesla isn't in control over
Tesla isn't in control over who buys their company. They have 75 % freefloat, meaning anybody can buy them simply by purchasing shares at the stock exchange. All they really need is 10 billion to become the biggest shareholder.
Scoobman
Uninvestable
Sensible chap, Herbert Diess. Tesla might be close to making a profit, but their debt levels are so astronomic that I can't see how it can possibly be repaid. And saying that "I think all they are doing, we can do" indicates that he thinks Tesla has less of a technology moat around its cars than many people think.
Boris9119
Agreed
Agreed, what would VW get out of the deal besides being saddled with Tesla's debt?
xxxx
Ans
The best BEV's on the market that sell in the 100 of thousands.
typos1 - Just can’t respect opinion
xxxx
Investments and Debt
Wonder where the smart money should have been over the last 3 years?
Tesla - $200 now $236
BMW 73 Euros now 64 Euros
Daimler 63 Euros now 47 Euros.
typos1 - Just can’t respect opinion
tuga
" Everything they can do, we can do "
Maybe, you should... erm... do it, then?
And Tesla going bankrupt is still very much possible. If/When they do, VW and everybody else will be more than willing to pick up the scraps.
xxxx
Admission
Good to see people are finally realizing just how far ahead Tesla are. When existing German companies say "I think all they are doing, we can do..." 'eventually' is an admission that Tesla are actually pretty good, something some people just can't admit.
Just look at the Taycan, brand new it statistics still don't stack up against an 8 year old Model S design that sells for £40k less.
typos1 - Just can’t respect opinion
shenmue
The question is: is pretty
The question is: is pretty good good enough? For EVs, they are good. But for what people want in a car? Not so much.
shenmue
The question is: is pretty
The question is: is pretty good good enough? For EVs, they are good. But for what people want in a car? Not so much.
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